Ranbaxy may face probe in India as well

The US government’s legal move against Ranbaxy for allegedly selling adulterated drugs in the US could expose the company to an investigation back home too. Concerned whether shareholders in the company were kept in the dark about potential risks or were given a rosier picture of the state of affairs, the Indian government is set to examine the charges levelled by US authorities and the company’s statutory documents. If the company’s documents show that the drug-maker has not taken its shareholders into confidence about the risks involved, a full-fledged investigation into the affairs of the company would follow. “We are keeping close tabs on the developments and would look into this issue,” said a top government official. The first step of the expected scrutiny would be an examination of the directors’ report (which forms part of the company’s annual report) in the light of the US Department of Justice’s charge that Ranbaxy sold sub-standard drugs in the US and forged documents to get them approved besides refusing to share documents, allegations the company strongly denies. If the company is found to have not disclosed enough information in the directors’ report for the full appreciation of the state of the affairs there, it could pave way for a full-fledged investigation. Ranbaxy’s spokesperson was not available for comment. By Ms.Bobby Aanand, Metropolitan Jury.

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